Thursday, August 5, 2010

Heaven Hill To Add Aging Capacity.

How much does a new whiskey warehouse cost? About $2.1 million, according to an announcement today by Kentucky Governor Steve Beshear. He announced that Heaven Hill will build two new warehouses in Nelson County, a $4.2 million capital investment.

Although 'rickhouse' is a more evocative term, most folks call them warehouses. The new ones are a little more modern but are still just a steel shell surrounding racks that hold the 53 gallon oak barrels in which whiskey is aged. Older designs typically hold about 20,000 barrels each. The new ones at Heaven Hill will be a little bigger than that, holding 22,968 barrels each. (The picture above is of a new warehouse at Jim Beam.)

“Kentucky is pleased to be part of the continued growth of one of our signature industries,” said Beshear.

The footprint of the new Heaven Hill warehouses will be 20,000 square feet each. Construction will begin soon and they expect to enter the first barrels by the end of January, 2011.

“The construction of these new warehouses is just another indication of not only the continued growth of our Evan Williams, Elijah Craig and other Bourbon brands but attests to the vitality of the Bourbon category around the world,” said Max Shapira, president of Heaven Hill Distilleries.

Heaven Hill will receive tax incentives up to $88,200 from the Kentucky Economic Development Finance Authority, through the Kentucky Enterprise Initiative Act.